The Suarez Trust Generated Distributable Net Income (DNI) This Year

question 30

Multiple Choice

The Suarez Trust generated distributable net income (DNI) this year of $150,000, two-thirds of which was portfolio income, and the balance of which was exempt interest. Under the terms of the trust, Clara Suarez is to receive an annual income distribution of $30,000. At the discretion of the trustee, additional distributions can be made to Clara or to Clark Suarez III. This year, the trustee's distributions to Clara totaled $60,000. Clark received $90,000. How much of the trust's DNI is assigned to Clara?

• A) $75,000
• B) $60,000
• C) $45,000
• D) $30,000

---

Definitions:

Carbon Emissions

The release of carbon dioxide and other carbon compounds into the atmosphere, contributing to climate change.

Optimal Level

The most efficient, effective, or desirable point or state for achieving a specific goal or outcome.

Costs of Pollution

The economic, health, and environmental damages caused by the emission of pollutants.

Environmental Standards

Rules established by a government to protect the environment by specifying actions by producers and consumers.